Today (on March 22nd), trends for Chinese animal and plant protein, oils & oilseeds and grains are shown as follows: 

 

    Daily review on soybean meal: US soybeans last night ended high on CBOT, and meantime, Dalian soybean meal futures today narrow rises but are still on the increase. Accordingly, domestic soybean meal spots go steady today amid some fluctuations and turnover is still general. Soybean meal prices in coastal areas range from 3,060 to 3,120 yuan/tonne, a variation of 10-20 yuan/tonne against yesterday (Tianjin prices 3,120 yuan/tonne, Shandong 3,085-3,090 yuan/tonne, Jiangsu 3,050-3,070 yuan/tonne, Dongguan 3,090-3,100 yuan/tonne, Guangxi 3,090-3,110 yuan/tonne). US soybean futures are weighed on by increasing soybean acreage in the US and worrisome trade tension between China and the US. On one hand, soybean meal keeps accumulating based on high operating rate and good crush margins, While on the other hand, sales of soybean meal are still poor given pig rising remains unsatisfactory after great losses. That puts soybean meal spots down. Additionally, with an expected overhaul in most oil mills for a half or one month from late March or early April, price decline of soybean meal will be capped amid haunting weather speculation. All in all, soybean meal spots may vibrate in line with futures for the time being, and in consequence, buyers are suggested to take a hand-to-mouth purchasing strategy.

    Daily review on imported rapeseed meal: today, prices for imported rapeseed meal are basically stable amid some variations, among which prices in coastal areas stand at 2,450-2,530 yuan/tonne, a variation of 10-30 yuan/tonne (Guangxi offers 2,440 yuan/tonne, down 10 yuan/tonne; Guangdong 2,510 yuan/tonne; Fujian 2,480 yuan/tonne, up 30 yuan/tonne). Soybean meal piles up to a staggering degree, helped by high operating rate and sufficient soybeans at ports. That no doubt puts great pressure on rapeseed meal when aquatic raising is off-reason though rapeseed supplies are also abundant. Shorter term, performance of rapeseed meal may track futures. Whereas, news goes around that US administration will impose a tax of sixty billion U.S. dollars on Chinese commodities on this Friday. If it is confirmed, China's countermeasures will inevitably be taken to the issue, and as a result, it will greatly boost domestic prices for soybean meal. Wisely, buyers had better take a hand-to-mouth purchasing strategy.

    Daily review on fishmeal: today, prices for imported fishmeal remain stable, yet prices are negotiable upon transaction and shipments at ports are general. Northern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 12,600-12,800 yuan/tonne; 13,300-13,500 yuan/tonne for Japanese SD with 67% protein content; 13,600-13,800 yuan/tonne for super steam fishmeal with 68% protein content. Southern ports: fishmeal price for ordinary SD with 65% protein content in Peru is 12,500 yuan/tonne; 13,300 yuan/tonne for Japanese SD with 67% protein content; 13,600 yuan/tonne for super steam fishmeal with 68% protein content. Port stocks: Hangpu has 32,000 tonnes, Fuzhou 33,000 tonnes, Shanghai 23,000 tonnes, Tianjin 1,000 tonnes, Dalian 4,000 tonnes, Fangchenggang 1,000 tonnes, and other ports 4,000 tonnes. Spots offers (FOB) in the outer remain stable, in detail, the fishmeal offer for ordinary SD with 65% protein content in Peru stays at USD $1,570 per tonne, USD $1,730 per tonne for super steam fishmeal with 68% protein content; the offer in Chile ordinary SD with 65% protein content is USD $1,850 per tonne, USD $1,980 per tonne for excellent fishmeal with 68% protein content. New-season fishing in Peru remains unknown, consequently, buyers at home mostly hold a wait-and-see attitude when demand for fishmeal is not seen rising significantly. Shorter term, fishmeal in domestic market will keep stable.

    Daily review on soybeans: due to a strict investigation by State Commodity Inspection Department, imported soybeans for distribution at Qingdao and Rizhao ports remain unquoted.  Imported soybeans for distribution are markedly restricted in food-grade products circulation for port inspections in consideration of ample domestic soybean supply. Market players are not optimistic about its performance even when trades are allowed at ports. Attention should still be paid to port inspections and soybean arrivals.  

    Daily review on oils: US soybeans showed a choppy market last night on CBOT, and in contrast US soybean meal and US soybean oil ended high, especially for oils owing to soaring crude oil and rising Malaysian Palm oil prices. Accordingly, oils on Dalian Commodity Exchange open high and go high, with which domestic soybean oil and palm oil spots also price up, yet lower prices still attract deals.  In real terms, domestic soybean oil stocks have now increased to 1.41 Mln tonnes, and are likely to expand based on high operating rate and large soybean arrivals in April-to-June period— around 27.6 Mln tonnes, thus under such bearish fundamentals, oil prices at home may be not unsatisfactory. But distributors in the midstream and downstream prefer to oil buying with their great interest in April-May basis when soybean production in Argentina may plunge to 40 Mln tonnes, therefore, oil prices will probably change in line with futures for the time being amid mixed long and short positions and crusher’s mindset for higher buying prices. Wisely, buyers had better take a hand-to-mouth purchasing strategy.

    Today’s soybean oil: main prices for GB grade-one soybean oil in coastal areas stay at 5,570-5,750 yuan/tonne, rising by 10-50 yuan/tonne (Tianjin traders offer 5,700-5,710 yuan/tonne, Rizhao traders 5,730 yuan/tonne, Zhangjiagang traders 5,750 yuan/tonne, Guangzhou traders 5,570-5,580 yuan/tonne).  

    Today'spalm oil: 24-degree palm oil prices in coastal areas range from 5,110 to 5,180 yuan/tonne, most up 10-20 yuan/tonne (Tianjin traders offer 5,170-5,180 yuan/tonne, up 20 yuan/tonne; Rizhao traders stop to report; Zhangjiagang traders 5,180 yuan/tonne, up 20 yuan/tonne; Guangzhou traders 5,110 yuan/tonne; Xiamen traders 5,160 yuan/tonne, up 10 yuan/tonne).

    Daily review on imported rapeseed oil: today, prices for imported rapeseed oil are basically stable, among which prices in coastal areas are 6,320-6,480 yuan/tonne (Great Ocean in Fangchenggang, Guangxi offers 6,380 yuan/tonne; Chinatex in Zhangzhou, Fujian offers basis 1809-180 for May delivery; Shenheng in Dongguan, Guangdong offers basis 1809-220 for May delivery). Among all the there major oils, rapeseed oil now takes the priority, but great supplies of its two major alternative oils, soybean oil and palm oil still put considerable pressure on its prices. Honestly speaking, soybean arrivals in the second quarter will rise substantially the time Malaysian palm oil also enters the production cycle. That demonstrates an overwhelming demands over supplies of oils, in this case, prices for rapeseed oil are hard to rise a lot, instead, prices will be relatively low in accordance with futures. Great attention should be paid to trade tension between China and the US on Friday, and if it goes worsen, prices for domestic oils will also be seen rising. 

    Daily review on corn: today, domestic corn prices mostly keep firm and vibrate in a tight range. Corn buying prices in Shandong deep processors mostly stay at 1,950-2,070 yuan/tonne, some down 10-20 yuan/tonne from yesterday. While the purchasing prices offered at Jinzhou port, Liaoning keep flat at 1,860-1,900 yuan/tonne (volume weight 690-710 g/L). Drying new corn of Liaoning and Jilin (moisture ≤ 15%, volume weight 690-700 g/L) at Bayuquan ports prices at 1,890-1,900 yuan/tonne. Corn prices at Shekou port, Guangdong settle at 2,040-2,050 yuan/tonne, basically unchanged from yesterday.Some dealers have been speeding up grain sales since yesterday when rains stop in most of the North China. Accordingly, some deep processors in Shandong province have seen a surge in corn buying with its buying prices decreasing by 16-30 yuan/tonne from yesterday’s afternoon. However on one hand, quite a lot feed sectors are still cautious about corn buying for auction about reserved corn remains unclear, and on the other hand, high-quality corn available for market flow is relative tight though several businesses have rigid demand, under such circumstance, corn prices may be limited to go down and shorter term, may keep high. Attention should still be paid to news about corn auction.

 

    Daily review on sorghum and barley: today, imported sorghum prices go steady where some ports price at 1,960-2,100 yuan/tonne (Nantong 2,050-2,100 yuan/tonne; Shanghai stops to report; Guangdong 1,960-1,980 yuan/tonne). And prices for imported barley go steady, about 1,860-1,930 yuan/tonne at main ports (Tianjin has not reported yet; Nantong offers 1,930 yuan/tonne, Guangdong 1,860 yuan/tonne). Imports of sorghum from America will fall impressively for the campaign of “anti-dumping and anti-subsidy” has been launched by China’s Ministry of Commerce for American sorghum and import costs keep increasing, especially for April delivery. Importers are now inclined to hold onto goods in hope for higher prices and in case of unavailable supply of lower costs and in view of upside-down sorghum prices at home and abroad. With bullish factors supported, grains at some ports price up further. Overall, grains in a short term may go high in prices.